How Many Items to Offer

Variety vs decision overload

Retail / Restaurants / CPGIntermediate

Overview

Coming Soon

This topic will cover the optimal design of product assortments and menus. Too many options trigger choice overload and reduce purchase rates, while too few options fail to match heterogeneous preferences.

Planned Content

  • Choice overload and the paradox of choice
  • Optimal product line length under heterogeneous preferences
  • Assortment optimization with substitution effects
  • Category management and shelf-space allocation
  • Interactive visualization: assortment profit simulator

Sources Needed

  • Iyengar, S. & Lepper, M. (2000). When choice is demotivating. Journal of Personality and Social Psychology.
  • Kök, A.G., Fisher, M.L. & Vaidyanathan, R. (2015). Assortment planning: Review of literature and industry practice. Retail Supply Chain Management.